Bundling applications and subsystems with the operating system is inherently unfair to consumers and in fact harmful to most if not all of them.

This is an interesting statement to make and, of course, Microsoft Corporation would wish that reality did not exist in many ways.  They clearly wish that the findings of facts issued by Judge Jackson were never published.  That we all know to be true.

However, the observation that bundling harms consumers and is indeed unfair to them is an interesting one indeed.

It is easy to understand how consumers who do not connect to the internet are harmed by being forced to buy IE anyway.  And, it is easy to understand how those consumers who prefer Opera or Navigator as their browser are harmed by being forced to buy a copy of IE.

But, is that really a financial harm to consumers?   After all, Microsoft publicly proclaims that IE is a free product.  And, how can anyone be financially harmed by buying a so-called free product?

Let's consider the financial harm caused to the most ardent die-hard promoters of Microsoft Corporation.  Let's consider the financial harm caused to Bill Gates by the bundling of IE with the operating system, Windows 98.  Impossible, you say?  Promoters of Microsoft (shareholders, employees and enslaved ISVs) could not possibly be harmed, right?  Wrong.  And, worse yet, the harm is financial.  And, it happens today.

Let's assume Bill Gates needs one more PC at home.  Now.  We all know his house has a lot of rooms.  Many of them have computers installed, right?  Of course, they do. They are all over the place.  But, lets assume there is one room left.  Let's assume there is one room that does not have a PC and Gates finds out.

So.  Bill Gates is in the market for a PC. (Forget the Mac, he is an Intel/AMD guy.)

Now. Gates is no dummy.  He knows he can download free copies of all kinds of software.  In fact, he was reading the findings of facts issued by a fellow named Jackson just a few weeks ago.  Bill Gates found out that anyone could log onto the internet and download a copy of IE 5.0.  Now, Gates (not being a dummy) knows that IE 5.0 is a pretty good
browser.  So. He finds a PC not currently in use around the house and precedes to download a fresh copy of Internet Explorer 5.0.  It works great!  Those high speed lines really pay off with the big downloads.  Now, Bill is all ready for the new PC.

Bill Gates runs down the street to the nearest computer store and orders up the best unit they have.  "What comes on that fine machine?", he blurts out.  The clerk, never aware of who he is dealing with says, "Why, it comes with Windows 98 and Internet Explorer for your web surfing pleasure".  But, Bill Gates being the sharp guy and tight wad
that he is, says, "But, I just downloaded a fresh copy of Internet Explorer 5.0 last night.".  Then Bill continues, "I want a $35 discount because I already have a fresh copy of that application.".  (See.  Bill Gates knows that browsers from Microsoft and Netscape both sold for $35 a piece in this store only a few months ago.)

Of course, the clerk says, "No one in this world is given that option!".  "I do not know who you think you are, but you will pay the full price for this system regardless of what software you already own".

Well.  Bill Gates is not used to being told what he must buy and pay for (regardless of his needs) but in the back of his mind something tells him he is powerless as a consumer.  So he gets out his plastic and the cash register rings him up.

Bingo.

Bill Gates himself is harmed financially due to the bundling of internet explorer with the operating system.  He wants IE!  He wants IE badly!  He wants IE so badly it is killing him!  But, he has to pay the higher bundled price because the local store will not or can not offer him or anyone else a discount for applications he already has.

Do all Microsoft promoters get harmed this way?  Do they all pay $35 to $140 more per PC because of the bundling of Internet Explorer with the operating system?  The short answer is, "all of the intelligent ones do".  The intelligent ones know for a fact they can download a free copy of Internet Explorer the night before they do their shopping.  They are
not dumb. They are intelligent. They know what options they have available to them. If they do not have a PC (or theirs busted on them) they can ask a friend to download a copy of IE for them, right?  Of course then can.  Friends like to help out friends.  Particularly smart ones.

So.  The only consumers who show up at the store not knowing that they could have downloaded IE the day before are the consumers pretty much without any current knowledge about the industry or the products available on the internet.  Certainly, no die-hard Microsoft supporter (including Bill Gates himself) would fit in that class of consumers.

So.  Is the practice of bundling applications with the OS inherently harmful to consumers and unfair?  With Internet Explorer it clearly is.

That practice financially harms die-hard Microsoft promoters and supporters (including Bill Gates himself).